The landscape of and challenges associated with the FX markets are constantly changing, particularly in view of:
- new developments in technology – resulting in faster, higher volume trades and exponential increases in participation at the retail and institutional levels;
- increased cross-border capital flows;
- increased use of new currencies;
- consolidation of FX processing in global or regional processing centers; and
- new developments in global regulations since the 2008 financial crisis.
Therefore, it is important for market stakeholders, including banks, industry groups and central banks and regulators to increase their understanding of the existing and emerging issues and work together to mitigate the risks and strengthen the resiliency of the market. The Federal Reserve Bank of New York (FRBNY), in particular, plays an important role in facilitating those discussions and working to promote sound practices through the development and implementation of policies and application of supervisory guidance.